Enterprise Value to EBITDA (EV/EBITDA)
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Hilton Worldwide Holdings Inc. pages available for free this week:
- Cash Flow Statement
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2013
- Price to Operating Profit (P/OP) since 2013
- Aggregate Accruals
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Hilton Worldwide Holdings Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Net Income (Loss) Attributable to Hilton Stockholders
- The net income experienced a significant decline in 2020, turning negative at -715 million USD compared to a positive 881 million USD in 2019, likely reflecting extraordinary challenges during that period. Following this downturn, the net income rebounded strongly in 2021 and continued to improve substantially, reaching 1255 million USD in 2022 before a slight decrease to 1141 million USD in 2023. Overall, the trend indicates a recovery and stabilization after the sharp loss.
- Earnings Before Tax (EBT)
- EBT mirrored the net income trend closely, with a sharp negative value of -924 million USD in 2020 from 1244 million USD in 2019. Recovery was evident in 2021, with EBT rising to 560 million USD and further increasing to 1734 million USD in 2022. A slight decrease to 1692 million USD in 2023 suggests relatively stable performance after recovery, maintaining earnings well above pre-pandemic levels.
- Earnings Before Interest and Tax (EBIT)
- EBIT followed a similar pattern to EBT but showed a less severe decline in 2020 at -495 million USD. The rebound was strong, with EBIT more than doubling from 957 million USD in 2021 to 2149 million USD in 2022, and marginally increasing to 2156 million USD in 2023. The steady high EBIT in the last two years indicates robust operational performance.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA also declined sharply to -164 million USD in 2020 from 2004 million USD in 2019 but exhibited the strongest recovery among all metrics. By 2021, EBITDA climbed to 1145 million USD and nearly doubled again in 2022 to 2311 million USD, slightly decreasing to 2303 million USD in 2023. The data suggest improving cash flow generation capacity and operational efficiency post-2020.
Enterprise Value to EBITDA Ratio, Current
Hilton Worldwide Holdings Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Airbnb Inc. | |
| Booking Holdings Inc. | |
| Chipotle Mexican Grill Inc. | |
| McDonald’s Corp. | |
| Starbucks Corp. | |
| EV/EBITDA, Sector | |
| Consumer Services | |
| EV/EBITDA, Industry | |
| Consumer Discretionary | |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Hilton Worldwide Holdings Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| EV/EBITDA, Sector | ||||||
| Consumer Services | ||||||
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV) Trends
- The enterprise value showed a moderate decline from 38,708 million USD at the end of 2019 to 38,162 million USD in 2020, likely reflecting market uncertainties during that period. Subsequently, there was a significant increase to 50,897 million USD in 2021. This was followed by a slight decrease to 47,646 million USD in 2022, and then a notable rise again to 57,765 million USD by the end of 2023, indicating a positive outlook and potentially improved market conditions or operational prospects in the latter years.
- EBITDA Performance
- EBITDA experienced a substantial deterioration in 2020, dropping to a negative 164 million USD from 2,004 million USD in 2019, signaling a period of operational challenges or extraordinary expenses. Recovery commenced in 2021 with EBITDA rising to 1,145 million USD. This positive momentum continued strongly through 2022 and 2023, where EBITDA values nearly doubled from the previous year, reaching 2,311 million USD and 2,303 million USD respectively, suggesting improved operational efficiency or revenue growth.
- EV/EBITDA Ratio Analysis
- The EV/EBITDA ratio increased sharply to 44.45 in 2021, reflecting a disproportionately high enterprise value relative to EBITDA, possibly due to the recovery phase post-2020 losses. The ratio decreased to 20.62 in 2022, corresponding with the rebound in EBITDA and a reduction in EV, indicating a better valuation alignment. In 2023, the ratio increased again to 25.08, implying that while EBITDA remained stable compared to 2022, the growth in enterprise value elevated the multiple, potentially reflecting market optimism or expectations of future earnings growth.
- Overall Insights
- The data suggests the company faced a significant operational and possibly external shock in 2020, evidenced by the negative EBITDA and slight drop in enterprise value. Recovery has been robust since 2021, with EBITDA nearly restoring to pre-2020 levels by 2023 and enterprise value reaching new highs. The fluctuations in the EV/EBITDA ratio highlight changing market sentiments and valuation perspectives over the period, particularly the high ratio in 2021 pointing to cautious optimism, followed by more balanced valuations in 2022, and a modest increase in valuation multiples in 2023.